Canada needs to build an additional 3.5 million homes by 2030 to address the current affordability crisis

Canada needs to build an additional 3.5 million homes by 2030 to address the current affordability crisis, according to a report by the Canada Mortgage and Housing Corp (CMHC). Existing projections for new home construction fall short of the demand, particularly in Ontario, British Columbia, and Quebec where affordability has declined significantly in recent years. Current construction rates predict an increase of 2.3 million units by 2030, but the figure would need to rise to over 22 million to achieve affordability for all Canadians. The report also identified the necessity for a drastic transformation of the housing sector, which would include converting underused retail or office space into residential units. However, challenges such as labour shortages, supply issues, and rising building material prices could hinder the necessary increase in construction.